C.A.R.’s Legal Live Webinars are online presentations conducted by C.A.R. attorneys on the first Tuesday of every month. Hear about legal developments and answers to common questions. Watch live or from a recorded post. Legal Live Webinars are offered as a free member benefit.

Your lifeline to the lending community formerly known as the Finance Helpline and Mortgage Rescue™. Find contacts and answers to all mortgage related questions, and problems that arise in your real estate transaction. Get assistance today!

C.A.R.’s Legal Live Webinars are online presentations conducted by C.A.R. attorneys on the first Tuesday of every month. Hear about legal developments and answers to common questions. Watch live or from a recorded post. Legal Live Webinars are offered as a free member benefit.

Your lifeline to the lending community formerly known as the Finance Helpline and Mortgage Rescue™. Find contacts and answers to all mortgage related questions, and problems that arise in your real estate transaction. Get assistance today!

All local associations/boards must designate and certify one person primarily responsible for administration of professional standards processes. NAR requires that all Professional Standards Administrators re-certify every four years, thereby meeting the learning objectives and minimum criteria established by NAR.

REALTORS® know very well the importance, and the complexity, of the various state and federal disclosure laws governing real estate transactions in California. This Sales Disclosure Chart is designed to provide REALTORS® and their clients with an easy-to-use reference guide for determining the applicability of these laws to the sales transactions most commonly handled by real estate licensees.

Be sure to check the detailed disclosure information in the Summary Disclosure Chart since there may be exceptions or special exemptions to a disclosure requirement.

The Sales Disclosure Chart addresses the general applicability of common disclosure requirements in particular types of transactions, but does not cover all disclosures required by law such as additional local requirements.

Finally, certain transactions, including new home, subdivision, and common interest development sales, are subject to separate disclosure requirements.

CC&Rs, Articles of Incorp., Bylaws, Rules & Policies, Current Financial Information (Operating Budget), Assessments, Assoc. Insurance, Civil Code Section 1133 Notice (if applic. For subdividers), Enforceable Policies/Fine Structure; A copy of the minutes of the meetings if requested; estimated fee for required HOA disclosures as distinguished from other fees, fines or assessments on specified form if requested; actual charges on specified form at time documents are delivered; statement describing leasing prohibitions, if any

Yes

Yes

Yes

Yes

No

No (unless the owner has an ownership interest in a subdivision, cooperative or condominium for mobilehomes)

Forms HOA-IR, HOA-RS and HOA-RN may be used to comply with statutory and contractual disclosure obligations

Cal. Civ. Code §§ 4525, 4528, 4530 and 4202

Death (in last 3 years)

Yes*

Yes*

Yes*

Yes*

Yes*

No**

TDS (if required)

SPQ may be used
(or ESD if TDS exempt)

Cal.Civ. Code §1710.2.

*if deemed a "material fact"

**Statute applies only to real estate but may be required under "material fact" analysis.

Earthquake Fault Zone1

Yes

Yes

Yes

Yes

Yes

Yes

NHD (if form required)

Cal. Pub. Res. Code §§ 2621 et seq.; Cal. Civ. Code §§ 1103 et seq.

Energy Use Report

This law has been repealed effective January 1, 2016. Cal.Pub.Res. Code § 25402.10

No

No

No

No

Yes/No

No

EPA's Portfolio Manager Energy Star Report 15.

Public Resources Code 25402.10

20 California Code of Regulations §§ 1680-1684

This law has been repealed effective January 1, 2016. Cal.Pub.Res. Code § 25402.10.

Farm or Ranch Proximity1

Yes

No

No

No

No

Yes

NHD expert's report

Cal. Civ. Code § 1103.4.

FHA/HUD Inspection Notice

Yes*

Yes*

Yes*

No

No

No

HID

HUD Mortgagee Letter 92564-CN

*Required only for FHA loans or HUD-owned property by lender.

Final inspection report including defensible space compliance

If obtained, final inspection report for construction or rebuilding demonstrating compliance with building codes to be provided to buyer

Effective January 1, 2020

Yes*

No

No

No

No

Yes*

Upon completion of construction or rebuilding, and if report was obtained, seller shall provide to buyer a final inspection report from local building official that property complies with all applicable building standards including defensible space laws.

Cal. Civil Code § 1102.6f.(b)

*Applies to property located in a High or Very High Fire Hazard Severity Zone.

Fire Home Hardening

Effective January 1, 2021 and July 1, 2025.

Yes*

No

No

No

No

Yes*

Statutory notice and questionnaire (C.A.R. form not yet available)

Cal. Civil Code § 1102.6f.*Applies to property built before 2010 located in a High or Very High Fire Hazard Severity Zone.

Effective January 1, 2021 and July 1, 2025.

Fire Defensible Space Compliance

Effective January 1, 2021

Yes*

No

No

No

No

Yes*

If locality has enacted a defensible space compliance law, then documentation of compliance is a point of sale requirement. If not, other disclosure requirements apply. See footnote 18.

Cal. Civil Code § 1102.19.

*Applies to property located in a High or Very High Fire Hazard Severity Zone.

Effective January 1, 2021 and July 1, 2025.

FIRPTA (Federal Tax Withholding)
and
California Tax Withholding

Yes*

Yes*

Yes*

Yes*

Yes*

No

AS may be used (applies to both federal and California Tax Withholding).

AB may be used (applies only to federal withholding).

Cal. Rev. & Tax Code §§ 18662, 18668; 26 U.S.C. §1445.

*If seller eligible, AS or other form required to avoid withholding by escrow.

Pamphlet:Protect
Your
Family
From Lead In Your Home (incorporated in Residential Environmental Hazards: A Guide for Homeowners, Buyers, Landlords
and Tenants)

Form: FLD

42 U.S.C.S. § 4852d; 40 CFR Part 745.

*Applies only to residential property built before 1978. See the Summary Disclosure Chart for exemptions.

Material Facts8

Yes

Yes

Yes

Yes

Yes

Yes

TDS or MHTDS
(if required)

The ESD or SPQ is required contractually by the RPA-CA depending on whether the transaction is TDS exempt. If a TDS is required, then an SPQ is also required. IF the transaction is TDS exempt, then the ESD is required.

The form NHD has been discontinued in the C.A.R. forms library. The statutory Natural Hazard Disclosure Statement which is provided as part of the third party NHD private report fulfills the statutory requirement.

Cal. Civ. Code §§ 1103 et seq.

Pest Control Inspection Report and Certification(wood destroying pests or organisms)

Yes*

Yes*

Yes*

Yes*

Yes*/No

No

Cal. Civ. Code § 1099.

*Seller or Seller’s agent must deliver inspection report and subsequent certification (of work completed) to Buyer only if required by contract or the Buyer’s lender.

This information is included in disclosure reports obtainable from third-party disclosure reporting companies. In transactions requiring a Natural Hazard Disclosure Statement (NHD), this information must be disclosed on the NHD form (which also may be prepared by a third-party company on behalf of a seller or real estate agent). Note that the "Airport in Vicinity", "Farm and Ranch Proximity" and "Notice of Mining Operations" disclosures are required to be included, when applicable, on NHD reports by experts. The statute doesn't otherwise make this a disclosure requirement. (Cal. Civ. Code
§ 1103.4.)

This disclosure requirement applies to transfers of precast concrete or reinforced/unreinforced masonry buildings with wood-frame floors or roofs. Though this requirement is most relevant to commercial properties, the law does not specifically exempt masonry buildings used for residential purposes.

Transfers by fiduciaries (e.g., trustees) administering trusts generally are exempt from this disclosure requirement. However, if the trustee is a natural person who is the trustee of a revocable trust and he or she is a former owner of the property or an occupant in possession of the property within the preceding year, then compliance is required.

The delivery of this booklet is not mandatory (unless required by contract), but provides important legal protections to a seller or real estate agent who elects to provide the booklet.

This disclosure requirement applies to transferors of "personal, commercial, or residential property" for which flood-related disaster assistance has been provided. Vacant land is not specifically addressed by this law. As a practical matter, however, a seller generally can determine, at the time federal disaster assistance is received, whether flood insurance is required by federal agencies for the property in question.

California law requires delivery of The Homeowner's Guide to Earthquake Safety in connection with transfers of real property. However, it may be prudent to provide this booklet to purchasers of personal property manufactured or mobile homes.

Federal law does not specifically require these disclosures in sales of personal property mobilehomes. However, federal regulators have taken the position that mobilehomes built before 1978 are covered by this law.

A seller or real estate agent involved in the transfer of real property or a mobilehome may be liable for failing to disclose material facts affecting the value or desirability of the property. Whether or not a particular fact is "material" depends on a variety of factors. A seller or real estate agent who is unsure as to the materiality of a particular fact should consult an attorney. Alternatively, many sellers and real estate agents resolve such doubts in favor of disclosure to minimize exposure to liability. While the disclosure of certain material facts sometimes must be made in a particular format (e.g., the Transfer Disclosure Statement, or the Manufactured Home or Mobile home Transfer Disclosure Statement), the law generally does not regulate how material facts must be disclosed (though written disclosure is almost always recommended). However, the RPA-CA requires that the seller complete an SPQ in transactions where a TDS is required, or if a TDS is not required, that the seller complete an ESD.

This information, as it pertains to Mello-Roos Community Facilities Districts, generally applies to resale transactions. Subdividers and their agents may have to comply with separate Mello-Roos district disclosure obligations under California Government Code § 53341.5.

California's Toxic Mold Protection Act requires that in residential and commercial/industrial lease transactions, and in commercial/industrial sales transactions, landlords/sellers disclose to tenants/buyers mold that either exceeds permissible limits set by California's Department of Health Services (CDHS) or poses a health threat. This disclosure need not be made until the CDHS establishes permissible mold exposure limits. The CDHS has not yet taken this action, and the Act does not specifically require any alternative disclosure in the interim.

The delivery of this booklet is not mandatory (unless required by contract), but provides important legal protections to a seller or real estate agent who elects to provide the booklet. This booklet is often combined with The Homeowner's Guide to Earthquake Safety and the lead hazard disclosure pamphlet Protect Your Family From Lead In Your Home (which are mandatory in certain transactions).

California law requires the seller of any real property to certify that new and replacement water heaters have been braced, anchored, or strapped to resist movement during an earthquake. Though these statutory requirements are most relevant to water heaters located in residential properties, they do not specifically exempt commercial or industrial properties.

California law requires all new and replacement water heaters, and all existing residential water heaters, to be braced, anchored, or strapped to resist movement during an earthquake, including those in mobilehomes and manufactured homes.

California law sometimes requires that a specific form (or exact language) be used. Examples are the AD, FLD, TDS, MHTDS, and the NHD. Other times, the law requires a disclosure but doesn't mandate that particular language be used. However, C.A.R. provides forms for that purpose--indicated in this chart by the words "may be used." The law doesn't require the use of these forms. Examples are the AVID, MCN, NTF, SBSA, ESD, SPQ, AS, AB, WHSD, REO, and REOL.

The disclosure required by this law consists of four documents: the Disclosure Summary Sheet, the Statement of Energy Performance, the Data Checklist, and the Facility Summary, all of which must be generated through the US Environmental Protection Agency (EPA) Energy Star Portfolio Manager.
This law has been repealed effective January 1, 2016. Cal.Pub.Res. Code § 25402.10
.

Smoke alarms are required under state law to be installed on all properties intended for human occupancy. However, as a point of sale requirement there are limited exceptions including bankruptcy, trust, probate and foreclosure sales, but not REO sales. It is prudent risk management to have the smoke alarms installed regardless of the type of property being sold. This is because it is often required by both locations and lenders, in addition to the state law requirement.

Under the Hazardous Substances Account Act, any owner of nonresidential property who knows, or has reasonable cause to believe, that any release of a "hazardous substance" as defined in the Act is location on or beneath his or her property must disclose this fact in writing to any prospective buyer or tenant before consummating the transaction. A residential seller discloses "environmental hazards" on the TDS in answer to question C.1., or if TDS exempt, on the Exempt Seller's Disclosures (form SSD) as a material fact

If a local jurisdiction has enacted a local vegetation management ordinance or a law that requires only the owner (as opposed to an owner and buyer) to comply with the state defensible space laws, then the seller of a property, located in designated high fire areas, must provide the buyer with documentation at point of sale stating that the property is in compliance. If there is no such local law, the seller shall provide documentation of compliance with state defensible space law, if the seller had obtained such documentation within six months prior to entering into the transaction. But if neither of the above, the seller and the buyer must enter into a written agreement in which the buyer agrees to obtain documentation of compliance with defensible space laws or local vegetation management ordinance within one year after close or as required by the local ordinance.

This chart is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.'s legal products and services, please visit C.A.R. Member Legal Services.

C.A.R. members who are broker-owners, office managers, or Designated REALTORS® may contact the Member Legal Hotline at (213) 739-8350 to receive expedited service. Members may also submit online requests to speak with an attorney on the Member Legal Hotline by going to http://www.car.org/legal/legal-hotline-access/. Written correspondence should be addressed to:

The information contained herein is believed accurate as of November 13, 2019. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney.